Australia implements sweeping ban on credit and crypto for online betting

The Australian government is banning the use of credit cards and cryptocurrencies in online betting in its latest bid to ease the gambling problems plaguing the country.

According to a local report dated June 11, the ban covers credit cards linked to digital wallets, cryptocurrencies such as Bitcoin, and other new types of loans. This means Australians can no longer place bets via borrowed funds or anonymous digital currencies.

The latest regulation for online betting is in line with brick-and-mortar casinos, which also ban the use of credit cards. However, the regulations do not apply to online lotteries, which still allow payments by credit card.

Kai Cantwell, CEO of Responsible Wagering Australia, is calling on the government to extend this ban to the types of gambling that are currently exempt.

“This is an important measure to protect customers and make it easier for people to keep their gambling behavior under control,” Cantwell said.

Last year MPs voted to approve amendments to the Interactive Gambling Act 2001. The law bans gambling providers from offering certain online services to people in Australia.

Gambling service providers were then given a six-month transition period to comply with the changing regulations. Companies that fail to comply with the ban risk fines of up to AU$234,750 (about $155,000).

The communications regulator has also been given greater power to enforce these restrictions.

Additionally, the federal government is considering a proposal to eliminate gambling advertising within three years. The proposal was one of 31 submitted during a parliamentary inquiry into the gambling problems plaguing the country.

Communications Minister Michelle Rowland said the government will announce more rules it plans to implement to prevent gambling in the future.

“Australians shouldn’t be gambling with money they don’t have,” he said.

In the past, Australia has had a thriving market for online casinos that accept payments via digital currencies such as Bitcoin. The fast and anonymous transactions offered by these cryptocurrencies attracted the attention of gamblers.

In fact, one study found that 30.7% of Australian gamblers played online games using cryptocurrency in 2019.

Recently, tax authorities Down Under have been targeting millions of crypto investors and seeking their personal information and details from crypto exchanges.